How to Make a Pay Stub: Free Step-by-Step Guide
A pay stub is the receipt for a paycheck. It shows what was earned, what was withheld, and what was actually paid. Whether you run payroll for a small team or you're self-employed and need proof of income for a landlord, this guide walks you through exactly what goes on a pay stub and how to create one.
What Is a Pay Stub?
A pay stub (also called a paycheck stub, pay slip, or earnings statement) is a document that breaks down a single pay period: gross wages, taxes withheld, other deductions, and the net amount paid.
Pay stub vs paycheck: A paycheck is the actual payment. A pay stub is the explanation. With direct deposit, the paycheck disappears into a bank account, but the pay stub stays as the written record.
Pay stubs matter for three reasons:
- Legal compliance — Most US states require employers to provide them every pay period.
- Proof of income — Banks, landlords, and lenders ask for recent stubs before approving loans, leases, or credit lines.
- Tax verification — Year-to-date totals on the final stub of the year should match your W-2.
What to Include on a Pay Stub
Every pay stub should contain these fields. Missing any one of them weakens it as proof-of-income documentation:
| Section | Required fields |
|---|---|
| Employer | Business name, address, EIN (employer ID number) |
| Employee | Full name, address, employee ID or last 4 of SSN |
| Pay period | Start date, end date, pay date |
| Earnings | Regular hours, overtime, bonuses, commission |
| Gross pay | Total before any deductions |
| Deductions | Federal tax, state tax, FICA, benefits, retirement |
| Net pay | Take-home amount after deductions |
| YTD totals | Year-to-date gross, deductions, and net |
The YTD column is the one most people forget. Without it, the stub is much weaker as proof of income because it doesn't show annual earning power.
How to Make a Pay Stub: Step by Step
The process is the same whether you're an employer running payroll or a contractor documenting your own income.
1. Gather employer and employee information
Have the business legal name, address, and EIN ready. For the employee, you need full name, address, and either employee ID or the last four digits of the SSN.
2. Define the pay period
Pick the start date, end date, and pay date. Common cycles:
- Weekly — 52 pay periods/year
- Bi-weekly — 26 pay periods/year (most common in the US)
- Semi-monthly — 24 pay periods/year (1st and 15th)
- Monthly — 12 pay periods/year
3. Calculate gross earnings
For hourly: regular hours × rate + overtime hours × (rate × 1.5). For salaried: annual salary ÷ number of pay periods. Add bonuses, commission, or tips as separate line items so the breakdown is clear.
4. Apply deductions
Subtract federal tax, state tax (if applicable), Social Security (6.2%), Medicare (1.45%), and any pre/post-tax benefits like health insurance or 401(k). More on each below.
5. Calculate net pay
Gross pay − total deductions = net pay. This is the actual amount that hits the bank account.
6. Update YTD totals
Add this period's gross, each deduction, and net to the running year-to-date totals. Carry these forward on every future stub.
7. Generate and save the PDF
Use a free pay stub generator to lay out the document professionally and download a PDF. Keep a copy for both employer and employee records — most states require employers to retain payroll records for at least 3 years.
Try our free pay stub generator — no signup required. Fill in the fields, preview the result, and download a clean PDF in under two minutes.
Common Deductions Explained
Here's what each line on a typical US pay stub means, with realistic numbers for an employee earning $5,000 gross per pay period:
| Deduction | Rate / Note | Example on $5,000 |
|---|---|---|
| Federal income tax | Based on W-4 and tax brackets | ~$650 |
| State income tax | Varies by state (0% in TX, FL, WA, etc.) | ~$200 |
| Social Security | 6.2% up to $168,600 wage base (2024) | $310 |
| Medicare | 1.45% (no cap), +0.9% on wages > $200k | $72.50 |
| 401(k) | Pre-tax, employee-elected | $250 (5%) |
| Health insurance | Pre-tax employee portion | $180 |
| Net pay | What's left | ~$3,337.50 |
Pre-tax vs post-tax: Pre-tax deductions (401(k), HSA, traditional health insurance) reduce taxable income. Post-tax deductions (Roth 401(k), garnishments) come out after taxes are calculated. Show them as separate sections so the math is auditable.
Pay Stubs for Self-Employed and Contractors
If you're a freelancer, sole proprietor, or 1099 contractor, no one issues you a pay stub — but you still need one when applying for a mortgage, car loan, or apartment lease.
For self-employed pay stubs, treat yourself as both employer and employee:
- Employer name = your business name (or your legal name if you operate as a sole proprietor)
- Employee = you
- Gross pay = what you actually earned that period (from invoices paid, not invoiced)
- Deductions = self-employment tax (15.3% covering both halves of FICA), estimated federal/state tax, plus anything else you withhold for yourself
A common mistake: using "expected income" rather than what was actually paid. Lenders cross-check stubs against bank deposits and tax returns. Inflated numbers will get you denied — or worse, flagged for fraud.
If you bill clients on a recurring basis, your invoicing rhythm and your "pay period" can be the same. See our freelance invoice guide for billing structure tips that map cleanly onto a self-employed pay stub.
Are Electronic Pay Stubs Legal?
Short answer: yes, in most US states — with caveats.
The Fair Labor Standards Act (FLSA) does not require pay stubs at all federally. State law fills the gap, and rules fall into four categories:
| Category | Examples | Rule |
|---|---|---|
| No requirement | AL, AR, FL, GA, LA, MS, OH, SD, TN | Employers don't have to provide stubs |
| Access state | AK, AZ, ID, IL, IN, KS, KY, MD, MI, MN, MO, NE, NV, ND, NH, NJ, NM, NY, OK, PA, RI, SC, UT, VA, WV, WI, WY | Stub must be available, paper or electronic |
| Access + print | CA, CO, CT, IA, ME, MA, NC, TX, VT, WA | Electronic OK, but employee must be able to print it easily |
| Opt-in to electronic | DE, HI, OR | Default is paper unless employee opts in to electronic |
When in doubt: provide an electronic PDF that the employee can download or print on demand. That satisfies almost every state's rule. Confirm specifics with your state labor department before changing your payroll setup.
Need a stub right now? Our pay stub generator creates a print-ready PDF that meets the format expected by lenders and landlords — no signup, no watermark.
FAQ
Can I make a pay stub for past pay periods? Yes. Backdating is fine when you're documenting income that was actually paid (e.g., reconstructing stubs you should have kept). It is not fine to invent income that never happened — that's fraud.
Do I need a pay stub if I get direct deposit? Yes. The deposit is the payment; the stub is the documentation. Most states require employers to provide one regardless of payment method.
What's the difference between gross pay and net pay? Gross pay is what you earned before anything is taken out. Net pay is what actually hits your bank account after taxes and deductions.
How long should I keep my pay stubs? Keep them at least one year — long enough to compare against your W-2. Keep year-end stubs for 3 years for tax records. Employers should retain payroll records for at least 3 years under the FLSA.
Can a pay stub serve as proof of income on its own? Often yes for one-off needs (an apartment lease), but lenders typically request 2–3 most recent stubs plus the latest W-2 or two years of tax returns for larger loans.
Are handwritten pay stubs valid? Technically yes if all required fields are present, but most banks and landlords reject them. A typed PDF with consistent formatting is the standard.
Start Creating Pay Stubs in Minutes
You don't need expensive payroll software for occasional pay stubs. Open the free pay stub generator, fill in the employer, employee, earnings, and deductions, and download a PDF. Your data never leaves your browser — there's no account, no signup, and nothing stored on a server.
If you also issue invoices to clients (common for sole proprietors who pay themselves), check our sole proprietor invoicing guide so your billing and your pay stubs tell a consistent story when a lender asks for both.